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Joe's Dry Cleaners is a sole proprietorship owned and operated by J. Smith. Currently a building and equipment are being rented pending completion of construction

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Joe's Dry Cleaners is a sole proprietorship owned and operated by J. Smith. Currently a building and equipment are being rented pending completion of construction of new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets and the liabilities of the business on 1 April 2015 are as follows: Cash, R3 000; Accounts receivable R900; Supplies, R250; Land, R7 000; Accounts payable, R1 260. Business transactions during April are summarised below: Paid rent for the month, R700. 2 Received cash from cash customers for dry cleaning sales, R3 450. 3. Paid creditors on account, R910. 4 Purchased supplies on account, R175. sCharged customers for dry cleaning sales on account, R1 750. Received monthly invoice for dry cleaning expense for April (to be paid on 10 May), R1 965. 7. Received cash from customers on account, R1 595. & Paid personal expenses by cheques drawn on the business, R300, and withdrew R550 in cash for personal use. Paid the following: wages expense, R990; truck expense, R275; electricity expense, R175; miscellaneous expense, R200. 10. Reimbursed a customer R50 for a garment lost by the cleaning company, which agreed to deduct the amount from the invoice received in transaction 6. u. Determined, by taking a stock count, the cost of supplies used during the month, R105. REQUIRED: (a) State the assets, liabilities and capital at 1 April 2015 in equation form. (b) Record, in tabular form below the equation, the increases and decreases resulting from each transaction. Explain the nature of each increase and decrease in capital by an appropriate notation at the right of the amount. After the last transaction, insert the final balances in each column and determine that the equation is in balance. (c) Record the above transactions in ledger accounts. Use ONLY the account titles from your schedule in (b). (d) Prepare a: (1) Statement of Profit or Loss for April 2015 (2) Statement of Financial Position at 30 April 2015 (3) Capital statement for April 2015 (note to capital)

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